El Salvador has ratified income tax treaties with Turkey and the UAE to prevent double taxation, strengthen tax cooperation and combat tax evasion and avoidance, with provisions covering business profits, dividends, interest, royalties and other income.
El Salvador’s Legislative Assembly announced that it has ratified two income tax treaties, one with Turkey and one with the United Arab Emirates (UAE) on 4 November 2026.
This follows El Salvador’s signing of tax treaties with Turkey and the UAE on 25 September 2026 in New York. They aim to stop the same income from being taxed in two countries. They also strengthen tax cooperation, help prevent tax evasion and avoidance, and improve economic relations between the signatory nations.
Each treaty sets out which country has the right to tax a given type of income. It also allows taxpayers to deduct payments made abroad, which reduces double taxation. The treaties further block individuals and companies from exploiting differences between tax laws to evade payments or lower what they owe.
The Turkey agreement sets rules for company profits, dividends, interest, royalties, and gains from selling goods. It also creates a process for resolving disputes over tax collection and allows the tax authorities of both countries to exchange information.
The UAE agreement covers taxes on income and capital. It also addresses the tax treatment of income from hydrocarbons, dividends, interest, royalties, capital gains, pensions, and employment income.
Both treaties will enter into force following the completion of El Salvador’s domestic legal procedures and the exchange of ratification instruments.
